I have written a draft of a petition that we could post on change.org, avaaz.org or any other platform that could be signed by UST investors and the community at large in order to receive a refund directly from the various exchanges.
My English is not excellent, so feel free to make corrections and suggestions.
Title: Open petition to Binance for reimbursement of USTC holders
Text: The cryptocurrency sector is full of risks and scams. In the last year alone there have been failures of exchanges like FTX, investment funds like 3AC, CeFi like Celsius, BlockFi and Voyager, and blockchain projects like Terra (Luna), which seems to have been the one that started the domino effect.
When an investor approaches such an industry, he has to take into account that he can lose everything he invests. However, in the specific context of the blockchain Terra (now Lunac) and its algorithmic stablecoin UST (now USTC), almost all investors have been fooled even by large exchanges such as Binance.
In fact, Binance introduced staking/earning support for UST just a month before the collapse without adequately informing investors; practically no investor could have imagined a sudden and immediate collapse of a stablecoin that should not have had this name given its behaviour.
In the first weeks after the collapse, there were proposals both on twitter and on the project forum to provide a refund to the small USTC investors which could have covered 99% of them (total between 1-1.5 billion dollars) using LFG funds.
Unfortunately, more than 7 months have passed and no investor has received any reimbursement from LFG, which declared itself unable to use its funds.
Moreover, on 21 May, immediately after the incident, a small Brazilian exchange already refunded USTC holders.
As the USTC community we are asking Binance and CZ, since they represent almost the entire cryptocurrency industry, to take the first step and reimburse their small USTC investors (the exact number is unknown) using the emergency fund for these purposes.
In this way, other exchanges will also follow suit by reimbursing their UST investors and justice will be done as well as restoring confidence in the market.